Sil͏ver Pr͏ices͏ Crash; MCX͏ Silv͏er Rate Plunges ₹14,000/kg, Global Prices Sink as War Te͏nsionsan͏d Rate Hi͏ke ͏Fears In͏te͏nsify͏

Mu͏mb͏a͏i,͏ ͏Mar͏ch 23: Silver prices recorded ͏a steep and br͏oad-based decline on Mo͏nday across͏ dom͏estic an͏d international͏ ͏markets, with futures on the Multi Commodity Exchange (MCX) falli͏ng sharply͏ and͏ global prices extending losse͏s. T͏he ͏sell-off͏ ͏comes amid ͏escala͏ting geopolitical tensions in the Middle East,͏ surging c͏rude oil pr͏ices, an͏d͏ risi͏ng expectation͏s of tighter monetary͏ p͏olicy globally.

MCX Silver C͏rashes ₹13,60͏6 to͏ ₹2,13,166/kg, Hits ₹2,1͏1,729 Low

͏Silver futures on the MCX for May ͏202͏6 ͏delivery dropped by ₹13,6͏06, or ͏6%, to ₹2,13,166 per kilogram, ma͏rking a sharp ope͏n͏ing decline. During i͏ntraday trade, prices touch͏ed a ͏low of ₹2,11,͏7͏29 p͏er kg, re͏flecting intense selling pr͏essure in ea͏rly sess͏ions͏.

Th͏e decl͏in͏e represents one of the sha͏rpest si͏ngl͏e-day corr͏ections in recen͏t months and continues͏ a͏ ͏broad͏er downtren͏d. Si͏lver h͏as no͏w fal͏len signi͏ficantly from i͏ts ͏late Januar͏y pe͏ak o͏f ₹4,39,337 p͏er kg, indicati͏ng a sharp erosi͏on i͏n ͏va͏lue over͏ ͏a short ͏period.

Global Silver Falls 3.2% to $65.61/oz, Extends Weak Trend

In the international market, spot silver declined by 3.2% to $65.61 per ounce, mirroring the downturn seen in gold and other precious metals. The global sell-off has pushed silver prices closer to multi-month lows, with continued weakness observed over recent sessions.

The fall in international prices has directly influenced domestic markets, as Indian silver rate today closely track global bullion movements and currency fluctuations.

Silver Drops ₹14,000/kg In India, Trades Near ₹2.13 Lakh

In the Indian market, silver prices saw a steep correction of nearly ₹14,000 per kilogram, bringing rates below the ₹2.13 lakh mark on the MCX. Spot market data also indicates a sharp fall, with silver priced around ₹2,30,000 per kg, down from ₹2,45,000 per kg in the previous session, marking a decline of ₹15,000.

City-wise, silver rate today remained broadly aligned with the national trend. Mumbai reported prices around ₹2,27,540 per kg, while Delhi stood at ₹2,27,150 per kg. Southern markets such as Chennai recorded slightly higher levels at ₹2,28,210 per kg, with Hyderabad and Bengaluru also trading above ₹2,27,700 per kg.

Silver ETFs Crash Up to 20% As Market Volatility Surges

Silver-linked exchange-traded funds (ETFs) witnessed sharp declines, falling between 9% and 20% during Monday’s session. Among them, Kotak Silver ETF recorded the steepest drop of 20%, falling to an intraday low of ₹17.77 from its previous close of ₹22.31.

Other ETFs, including Axis Silver ETF and Bandhan Silver ETF, declined by around 11%, while Edelweiss Silver ETF dropped nearly 10%, hitting a low of ₹209.43. The widespread decline across ETFs highlights the extent of volatility and the broad-based nature of the sell-off in silver markets.

Hindustan Zinc Shares Fall 4.5% As Silver Weakness Hits Producers

Shares of Hindustan Zinc, India’s largest silver producer, declined by around 4.5%, trading near ₹491.3 per share during the session. The decline aligns with the sharp fall in silver prices, which directly impacts revenue visibility for mining companies.

Additionally, shares of its parent company Vedanta also dropped by approximately 4.5%, reflecting broader weakness across metal stocks. The Nifty Metal index fell over 3.5%, indicating sector-wide pressure.

Hindustan Zinc, headquartered in India, operates as a leading mining and metals company engaged in the production of zinc, lead, and silver. It is a key player in the domestic metals sector and closely tracks global commodity price movements.

Crude Above $110 and War Escalation Trigger Sharp Sell-Off

The sharp fall in silver prices is closely tied to rising geopolitical tensions, particularly the ongoing conflict involving the United States, Israel, and Iran. Crude oil prices have surged above $110 per barrel, driven by concerns over supply disruptions, especially around the Strait of Hormuz.

The elevated oil prices have intensified global inflation concerns by increasing transportation and manufacturing costs. While inflation is typically supportive of precious metals, the current environment has shifted market dynamics, with inflation now reinforcing expectations of tighter monetary policy.

Rate Hike Expectations Rise to 27%, Weakening Silver Demand

Market expectations for interest rate hikes have strengthened significantly, with data indicating a 27% probability of a US Federal Reserve rate increase by December. The likelihood of a rate hike in June has also risen to approximately 22%, up from 15% a week earlier.

Higher interest rates reduce the appeal of non-yielding assets like silver, as investors shift focus towards interest-bearing instruments. The strengthening US dollar, hovering around the 100 mark, has further added pressure by making silver more expensive for global buyers.

Other Precious Metals Also Decline Alongside Silver

The broader precious metals market also reflected weakness. Platinum declined by 2.9% to $1,866.65 per ounce, while palladium edged lower by 0.5% to $1,397.25 per ounce.

The synchronised decline across metals indicates a broader shift in market sentiment driven by macroeconomic factors rather than metal-specific fundamentals.

March Sees Over 22% Fall as Prices Drop to ₹2.30 Lakh/kg

Silver prices have been under sustained pressure throughout March. Data shows that prices have declined from approximately ₹2,95,000 per kg at the beginning of the month to ₹2,30,000 per kg, marking a fall of over 22%.

The highest level recorded during March was around ₹3,15,000 per kg, while the lowest has now dropped to ₹2,30,000 per kg, indicating a clear downward trend. On a daily basis, silver prices fell from ₹2,45,000 per kg on March 22 to ₹2,30,000 per kg on March 23, a sharp ₹15,000 decline.

Central Banks Hold Rates But Signal Tightening Bias

Major central banks, including the European Central Bank, Bank of England, and Bank of Japan, have maintained their current policy rates but indicated readiness to tighten further if inflation persists.

This stance has reinforced expectations of prolonged higher interest rates globally, contributing to sustained pressure on silver prices.

Dollar Strength And Liquidity Concerns Add to Pressure

The strengthening US dollar and rising Treasury yields have further dampened silver’s appeal. A stronger dollar increases the cost of silver for international buyers, reducing demand.

Additionally, liquidity-driven selling amid market uncertainty has also contributed to the decline, as participants reassess positions in response to rapidly changing macroeconomic conditions.

The sharp fall in silver prices reflects a convergence of global factors, including geopolitical tensions, elevated crude oil prices, and rising expectations of higher interest rates. Movements in oil prices, developments in the Middle East conflict, and global monetary policy signals will continue to influence silver price trends, alongside currency fluctuations and broader macroeconomic indicators.

Sources

• https://www.mcxindia.com/market-data/market-watch
• https://www.bullionworld.in/ibja-silver-price.php
• https://ibjarates.com/
• https://www.gjc.org.in/
• https://silverprice.org/silver-price-india.html